Author: Elizabeth Hewerdine

July 10, 2024 — Secure Net Lease coordinated the closing of a Bojangles in a prime location of Saluda, South Carolina. This deal highlights SNL’s attractive inventory and ability to present buyers with the right investment.

SNL’s Todd Lewis effectively closed the all-cash deal with a private buyer from South Carolina. The buyer’s broker, from Tennessee, also played a crucial role in the transaction closing smoothly within a 45-day timeframe.

“This deal proceeded smoothly once we adjusted the price. Initially, the aggressive pricing didn’t generate much interest, but after making a price adjustment, we received two offers and selected the right one. The buyer’s broker from Tennessee did an excellent job, resulting in a smooth closing and a successful transaction” Lewis said.

The 2,425-square-foot QSR, built in 2022, boasts strong store sales and a healthy rent-to-sales ratio. Situated at a prime location in the center of the market, it stands at a popular signalized intersection with multiple points of access on two primary roads. The site is conveniently located 40 miles from both Augusta, GA, and Columbia, SC, and within a one-hour drive of more than 1.3 million people.

“The buyers were considering multiple QSRs in the Southeast, and we presented them with the best option. The high sales volume, the fact that it was the top franchisee for Bojangles, and the increased inquiries were essential factors of the deal.”  

Bojangles is a popular fast-food restaurant chain primarily located in the Southeastern United States. It is known for its Southern-inspired menu and its friendly and fast service, aiming to provide a welcoming and down-home dining experience. The franchisee, BOJ of WNC, is the largest and most profitable operator in the Bojangles system with more than 115 units and counting and in excess of $210M in annual revenue.

The property’s strong performance and the increased inquiries were crucial factors in closing the sale. This deal highlights the appeal of well-positioned retail properties in thriving markets.

About Secure Net Lease

Secure Net Lease is a nationally recognized brokerage firm with offices in Dallas, TX and Los Angeles, CA that specializes in the acquisition and disposition of investment real estate. With over 100 years of collective experience, over $7.4B in sales, and transaction history in 48 states, Secure Net Lease consistently ranks among the top 10 of all brokerage firms nationally within their niche. Secure Net Lease works with developers, tenants, private and institutional owners to achieve market-setting cap rates for single- and multi-tenant net lease investments across the nation. Historically, 88% of Secure Net Lease offerings are new construction leased to nationally known tenants with 10+ years remaining on the primary term.

 

July 1, 2024 — Secure Net Lease facilitated the smooth closing of a Murphy Express gas station located in Mary Esther, FL. The deal, completed at the beginning of July, highlights SNL’s broad network and reach on both a national and local level.

SNL’s Kyle Varni successfully brokered the deal with a private investor from Fort Lauderdale, FL who was motivated by a 1031 exchange, having recently sold a warehouse in the Miami, FL MSA. The broker, based in Florida as well, facilitated the all-cash transaction, which was driven by the seller’s motivation as a merchant developer.

“We recently closed a transaction involving a buyer who came from an industrial property exchange in the Miami, Florida area. This was their first Net Lease transaction, facilitated smoothly with the help of a family member who acted as their broker. They secured the deal at a very competitive cap rate for Murphy Express in the current market” Varni said.

The 2,824 square-foot gas station is a brand new construction site sitting on almost an acre of land. The city has close proximity to popular tourist destinations, being located on the Gulf Coast. It sits in between Pensacola and Panama City, and is located only 9 miles from Destin and 2 miles from Fort Walton Beach. Okaloosa County receives around 7.5 million tourists every year, making this an attractive area for investments.

“Initially, the buyer was interested in another Murphy Express property we had listed in Texas. However, we were able to direct them to this property in Florida, which was closer to home for them. The entire process was relatively smooth with no major hiccups or challenges. By leveraging our multiple Murphy Express listings, we attracted the right local buyer and successfully closed the deal.”

Murphy USA (NYSE: MUSA) is a leading retailer of gasoline and convenience merchandise, operating more than 1,720 locations in 27 states under the brands Murphy USA and Murphy Express. The brands provide quality fuels at the best value to approximately 2 million customers a day.

This transaction underscores Secure Net Lease’s ability to leverage its extensive network and expertise to attract the right local buyers, facilitating successful real estate investments.

About Secure Net Lease

Secure Net Lease is a nationally recognized brokerage firm with offices in Dallas, TX and Los Angeles, CA that specializes in the acquisition and disposition of investment real estate. With over 100 years of collective experience, over $7.4B in sales, and transaction history in 48 states, Secure Net Lease consistently ranks among the top 10 of all brokerage firms nationally within their niche. Secure Net Lease works with developers, tenants, private and institutional owners to achieve market-setting cap rates for single- and multi-tenant net lease investments across the nation. Historically, 88% of Secure Net Lease offerings are new construction leased to nationally known tenants with 10+ years remaining on the primary term.

June 26, 2024 — Secure Net Lease, a renowned brokerage firm specializing in the acquisition and sale of investment real estate, facilitated the all-cash sale of a newly renovated Banfield Pet Hospital in an attractive area of Midlothian, Virginia. The transaction was completed in late June, with the buyer being a local private investor from Virginia motivated by a 1031 exchange.

SNL’s Matthew Scow shared insights on the sale process: “We acquired this listing from another group, and the process was relatively slow at first due to the double net nature of the deal. To find a buyer, we reached out to numerous contacts in Virginia, aiming for a local purchaser. Eventually, we found the perfect match: a lovely couple from Virginia. They had land under contract with Home Depot, which allowed them to act quickly and meet the two-week closing requirement needed to start the exchange. This deal fit their needs perfectly. We listed the property at a 5.75% cap rate and ultimately closed at a 5.80% cap rate. The property, a former bank building, is in a prime location of Midlothian, Virginia. The couple toured the business and were very enthusiastic about it.”

The property, located at 13001 Hull Street Road, Midlothian, VA, near Richmond, VA, is positioned in a high-traffic area near several nationally recognized tenants such as Target, Starbucks, and Dick’s Sporting Goods. This prime location adds to the property’s attractiveness, making it a valuable investment.

“Banfield Pet Hospital, owned by the Mars Corporation, which is now one of the largest private companies in the U.S., brings strong financial backing to the table. Their solid credit helped mitigate concerns about the double net lease, making this deal more attractive to the buyers.”

This transaction highlights the continuing demand for prime real estate in Virginia and underscores the importance of local investment in driving economic growth. The sale of Banfield Pet Hospital to these local investors is a testament to the property’s value and the strategic planning involved in securing the right buyers.

About Secure Net Lease

Secure Net Lease is a nationally recognized brokerage firm with offices in Dallas, TX and Los Angeles, CA that specializes in the acquisition and disposition of investment real estate. With over 100 years of collective experience, over $7.4B in sales, and transaction history in 48 states, Secure Net Lease consistently ranks among the top 10 of all brokerage firms nationally within their niche. Secure Net Lease works with developers, tenants, private and institutional owners to achieve market-setting cap rates for single- and multi-tenant net lease investments across the nation. Historically, 88% of Secure Net Lease offerings are new construction leased to nationally known tenants with 10+ years remaining on the primary term.

Their solid credit helped mitigate concerns about the double net lease, making this deal more attractive to the buyers.

June 5, 2024 — Secure Net Lease, a nationally acclaimed brokerage firm, facilitated the sale of a newly constructed 7-Eleven in an affluent area of Houston, Texas. The transaction was completed in early June, with the buyer being a private investor from Florida motivated by a 1031 exchange.

SNL’s Ed Benton facilitated the all-cash deal, showcasing the high demand and competitiveness in the market. The buyer and broker, both hailing from Florida, managed to secure a favorable cap rate in a challenging market environment, highlighting the strategic importance and attractiveness of the property.

This deal exemplifies the dynamic nature of the real estate market, especially in high-demand areas such as Houston. The transaction was noted for its smooth and swift process, underscoring the efficiency and expertise of all parties involved.

Ed Benton said “The buyer was previously in the gas station business and understood the product type. I got the opportunity to meet them in person when they came to town and was able to spend the day with them looking at the property and driving the area. In that meeting I was able to educate them on why 7-Eleven chose that site and explain several key factors about the location that made the tenant believe it was going to be a good performing location for them.”

The large-format 7-Eleven, located at 2851 W Mount Houston Road, sits on a 3.51-acre site with 10 gasoline pumps and 20 fueling positions. The site is located in a dense industrial area, adjacent to 120-acre industrial park and several small industrial businesses. This property is also strategically positioned near George Bush Intercontinental Airport, Houston’s largest airport with over 40 million travelers per year.

“What was most compelling for 7-Eleven was their ability to have a diesel terminal on the property allowing them to capture fuel sales from the large amount of truck traffic on that section of West Mt. Houston Road. This conversation and time spent with the buyer played a big part in them moving forward with the purchase at a very aggressive CAP Rate for the seller.”

7-Eleven, Inc. is the premier name and largest chain in the convenience-retailing industry. Based in Irving, TX, 7-Eleven operates, franchises and/or licenses more than 85,000 stores in 20 countries. They continue to develop new stores year-round and are constantly thinking of innovative ways to increase consumer engagement.

About Secure Net Lease

Secure Net Lease is a nationally recognized brokerage firm with offices in Dallas, TX and Los Angeles, CA that specializes in the acquisition and disposition of investment real estate. With over 100 years of collective experience, over $7.4B in sales, and transaction history in 48 states, Secure Net Lease consistently ranks among the top 10 of all brokerage firms nationally within their niche. Secure Net Lease works with developers, tenants, private and institutional owners to achieve market-setting cap rates for single- and multi-tenant net lease investments across the nation. Historically, 88% of Secure Net Lease offerings are new construction leased to nationally known tenants with 10+ years remaining on the primary term.

This conversation and time spent with the buyer played a big part in them moving forward with the purchase at a very aggressive CAP Rate for the seller.

Dallas, May 5, 2024 – Secure Net Lease completed a 1031 Exchange sales transaction involving a newly constructed 7-Eleven Store in San Marcos, TX. The nationally-recognized brokerage that specializes in the acquisition and disposition of investment real estate throughout the United States, arranged the sale of a 4,650-square-foot store held under a 15-year, corporate, absolute NNN lease.

Secure Net Lease’s Edward Benton represented the seller, an Austin, TX-based developer. The buyer was a Sherman Oaks, CA-based private 1031 investor.

Ed Benton said, “The buyer sold a roughly one-acre, trophy asset in the Los Angeles market that had been part of its family holdings for many years. Once its down-leg transaction closed, the family sought a 1031 Exchange property, and this 7-Eleven asset built in 2023 in Texas appealed to them.”

The large-format 7-Eleven, located at 1231 E. McCarty Lane, sits on a 1.74-acre site with 40 parking spaces and eight gasoline fueling pumps. The site is adjacent to an Amazon Fulfillment Center that employs more than 1,000 people and roughly three miles from the 570-acre, 38,370-student campus of Texas State University.

“Our team understood this buyer type is rarely in the market and required us to leverage our internal platform and deep relationships throughout the brokerage community to successfully source a buyer and achieve a top of market CAP rate for our seller client,” said Benton. “This 1031 Exchange transaction was accomplished by keeping the San Marcos, TX 7-Eleven site top of mind with the eventual buyer as it worked through a two-month closing process on a separate down-leg transaction.”

7-Eleven, Inc. is the premier name and largest chain in the convenience-retailing industry. Based in Irving, TX, 7-Eleven operates, franchises and/or licenses more than 78,029 stores in 18 countries.

San Marcos, TX is located 20 miles south of Austin and 40 miles north of San Antonio. The city is one of Austin’s major suburbs and is accessed via major roadways such as IH-35, SH-130, US-183 and IH-10. The population of San Marcos grew 55% from 2010 to 2019, reaching 70,301 and with the expectation it would hit 86,200 people by 2030.

About Secure Net Lease

Secure Net Lease is a nationally recognized brokerage firm with offices in Dallas, TX and Los Angeles, CA that specializes in the acquisition and disposition of investment real estate. With over 100 years of collective experience, over $7.4B in sales, and transaction history in 48 states, Secure Net Lease consistently ranks among the top 10 of all brokerage firms nationally within their niche. Secure Net Lease works with developers, tenants, private and institutional owners to achieve market-setting cap rates for single- and multi-tenant net lease investments across the nation. Historically, 88% of Secure Net Lease offerings are new construction leased to nationally known tenants with 10+ years remaining on the primary term.

Our team understood this buyer type is rarely in the market and required us to leverage our internal platform and deep relationships throughout the brokerage community.

May 22, 2024 — Secure Net Lease, a nationally-recognized brokerage that specializes in the acquisition and disposition of investment real estate throughout the United States, sold a newly-built Shake Shack in Round Rock, Texas. The buyer was a private California investor seeking to increase its Texas real estate holdings. The seller was a Texas-based developer.

Secure Net Lease’s Matthew Scow and Bob Moorhead represented the seller in the absolute NNN ground lease transaction.

The Shake Shack property located at 1402 North Interstate 35 in Round Rock, TX, is Secure Net Lease’s eighth Shake Shack closing, which have averaged 5.00 Cap rates and exceeded $43 million in total combined deal value. The Dallas-based firm has sold the most retail property in Texas since 2019, according to Costar.

“Completion of this transaction reflects our effective marketing campaign” said Scow. Secure Net Lease was able to achieve a win-win between parties by maximizing collaboration of both outside and internal brokers.”

“While the buyer intended to put some debt on the property during the contract period, they were still able to close all-cash to meet the closing timeline per the requirements,” said Moorhead. “This transaction was smooth and efficient, demonstrating a high level of professionalism and cooperation from all parties involved.”

Shake Shack is a modern day “roadside” burger stand serving a classic American menu of premium burgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer and wine. Since the original Shack opened in 2004 in NYC’s Madison Square Park, the Company has expanded to over 520 locations system-wide, including over 335 in 33 U.S. States and the District of Columbia, and 185 international locations across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.

About Secure Net Lease

Secure Net Lease is a nationally recognized brokerage firm with offices in Dallas, TX and Los Angeles, CA that specializes in the acquisition and disposition of investment real estate. With over 100 years of collective experience, over $7.4B in sales, and transaction history in 48 states, Secure Net Lease consistently ranks among the top 10 of all brokerage firms nationally within their niche. Secure Net Lease works with developers, tenants, private and institutional owners to achieve market-setting cap rates for single- and multi-tenant net lease investments across the nation. Historically, 88% of Secure Net Lease offerings are new construction leased to nationally known tenants with 10+ years remaining on the primary term.

Secure Net Lease was able to achieve a win-win between parties by maximizing collaboration of both outside and internal brokers.

Recent convenience-store sales activity has pushed Secure Net Lease past $2 billion in C-store sales. The nationally-recognized brokerage that specializes in investment real estate throughout the United States, has closed escrow on 440 convenience-stores in 23 states encompassing the top retailers in the nation including Wawa, 7-Eleven, Sheetz, Nouria, QuikTrip, Circle K, GPM, Chevron, Shell, ARCO, Food City, Holiday Station, Kum & Go, Murphy USA, Mountain Express, Marathon, Thorntons, Speedway, Allsup’s, Yesway, Valero, and EG Group America.

The Dallas-based firm completed the sale of two newly constructed 7-Eleven stores, one in Lumberton, NC and another in Stafford, VA. Secure Net Lease’s Matt Scow represented the seller in the transactions. These deals reflect the long-standing partnership Secure Net Lease has built with the developer, which has resulted in 174 net lease property sales transactions totaling $590 million, including 95 convenience-stores.

“These latest sales involve new construction 7-Elevens with 15-year corporate leases. The East Coast buyer was seeking solid C-Store assets to fulfil their 1031 exchange and take advantage of bonus depreciation,” said Scow. “Secure Net Lease worked successfully with all the parties including buyer’s agent, lender and tenant to facilitate an on time and same day closing for both properties in two different states.”

Secure Net Lease C-Store Niche

Secure Net lease has researched roughly one-third of the estimated 150,000 C-stores in the U.S., which includes over 237 concepts and 22,000 unique convenience-store landlords the firm regularly contacts. “Our database is amazing. Many of the buyers I’ve procured over the years have come from it. Anytime I get a new C-store listing, I’ll spend the first few weeks calling through landlords of the same tenant or who own other stores in the area,” says Ed Benton who joined the Secure Net Lease team in 2017. Once a competitor of Secure Net Lease, Benton is now one of its top producing agents.

Industry Trends

Banks and drug stores once held the position as the darling of the net lease sales industry. But online shopping and mobile banking has changed the retail landscape. Convenience-stores have filled that void. C-store leases are often guaranteed by multi-billion-dollar corporations, they tend to perform well in a down economy, and have been largely unaffected by e-commerce.

“There has also been an overflow of new store growth and M&A activity in the C-store space during the last several years, which leads to more real estate sales,” says John Beckman, who recently joined Secure Net Lease, acclaimed for his specialized advisory services in the convenience and gas station space, with a focus on M&A and sale-leasebacks.

“Convenience and gas station properties benefit from bonus depreciation,” says Bob Moorhead, Secure Net Lease Managing Partner, who has built close relationships with 7-Eleven corporate level real estate executives based in the Dallas Fort Worth area. “In addition to keeping up with the latest 7-Eleven expansion plans,” says Moorhead, “these relationships have been instrumental in getting the crucial sales-reporting language added to leases for bonus depreciation buyers.”

Other Notable Secure Net Lease Transactions

• Secure Net Lease facilitated one of Texas’ largest convenience-store transactions on record between Yesway and Allsup’s. The firm completed a $237-million sale leaseback involving 76 Allsup’s convenience-store locations in multiple states. The Allsup’s Portfolio sale leaseback was an integral component of a larger nearly $1-billion acquisition transaction between Yesway and Allsup’s Convenience Stores. Press Release: https://securenetlease.com/secure-net-lease-closes-record-237-million-multi-state-c-store-portfolio/
• Secure Net Lease’s Joe Caputo and Anthony Pucciarello have listed and sold 31 QuikTrip sale-leaseback locations, totaling $153 million, throughout the Midwest and Southeast. “Initially this business was split between several other brokerage firms, but we earned our way in to being their go-to team for sale-leaseback listings,” says Caputo.

About Secure Net Lease

Secure Net Lease is a nationally recognized brokerage firm with offices in Dallas, TX and Los Angeles, CA that specializes in the acquisition and disposition of investment real estate. With over 100 years of collective experience, over $7.4B in sales, and transaction history in 48 states, Secure Net Lease consistently ranks among the top 10 of all brokerage firms nationally within their niche. Secure Net Lease works with developers, tenants, private and institutional owners to achieve market-setting cap rates for single- and multi-tenant net lease investments across the nation. Historically, 88% of Secure Net Lease offerings are new construction leased to nationally known tenants with 10+ years remaining on the primary term.

There has also been an overflow of new store growth and M&A activity in the C-store space during the last several years, which leads to more real estate sales.